SoC technology has historically brought challenges to engineers, from design to final test. So, industry has been searching for solutions that can implement SoCs with relatively less difficulty. In the packaging industry, system-in-package (SiP) technology is a potential solution for reducing or eliminating SoC bottlenecks. SiP technology integrates various functional dies with different process technologies onto one substrate. Moreover, SiP technology lets customers freely select different packaging methodologies and substrate materials according to different product requirements. Considering the huge potential cost of SoC development, SiP is an alternative that can shrink component size and increase system operating speed. Many smaller-scale manufacturers in Taiwan that are unable to invest in advanced packaging process equipment, for example, can still leverage traditional packaging resources and technologies acquired in the past to further drive SiP technology research and development, and they can penetrate higher-margin SiP module design areas through SiP technology development. This FSA report (a shorter version of an earlier report released by FSA in September 2006) provides an in-depth introduction and analysis on SiP technology by discussing SiP market perspectives and related SiP patent issues.